Glasgow City Council leader Ricky Bell has warned that the authority could "run out of money" if trade unions reject a proposed new pay structure, potentially leading to a "Birmingham situation".
In an interview with the Record, Bell said the council did not have "another penny" to offer unions to resolve the long-running equal pay dispute. He cautioned that failure to introduce a new pay grading system could push the local authority toward financial collapse, referencing Birmingham, which declared effective bankruptcy in 2023.
Union ballot under way
Three unions - the GMB, Unite and Unison - have balloted their members in Glasgow on whether to accept the new pay restructure. Results are expected in the coming days. If no deal is reached, the council faces a tight deadline to renegotiate before the end of the financial year in March.
The SNP-run administration previously faced backlash in September when it told 23,000 workers they would be sacked and rehired under new contracts if an agreement was not reached. That threat was temporarily withdrawn after the Scottish Government intervened to mediate, offering greater pay protection to affected staff.
No further funds available
Bell said there would not be a repeat of that intervention if the latest deal is rejected. Asked what happens if one of the unions votes against the new structure, he said: "The challenge for us is - and I have been really clear and honest with the unions - is I don't have another penny to give them. The city can't afford that."
He added: "But we also can't afford not to change the pay structure, because the courts have already determined our existing pay grading system is discriminatory. For every month we keep that in place, we end up having to pay more in compensation. So the bill goes up every single month."
Bell said the vast majority of staff would remain on the same salary, with many receiving better pay. He acknowledged that some would earn less but noted three-year pay protection had been built in. The council is committed to working with affected staff on options such as early retirement, voluntary redundancy, or redeployment, he said.
Fire and rehire uncertainty
Asked whether he might again adopt fire and rehire tactics, Bell said: "The difficulty is we're trapped between two places right now. I'm someone who doesn't believe in fire and rehire. I think it's an unscrupulous thing to do. But that's because most people are doing it to reduce people's terms and conditions."
He said the council's situation differs because the existing scheme is illegal. Bell noted that if the UK Government introduces legislation to outlaw fire and rehire, the council could face a difficult bind if unions cannot be persuaded to accept the deal. He suggested the UK Government may reconsider the issue and potentially make an exemption for local government, as many councils in Scotland and England could face similar circumstances.
Bell concluded: "If we can't persuade the unions, and you can't do fire and rehire, then we have nowhere to go. We would end up in a Birmingham situation, because eventually the council will run out of money to pay compensation."
